Many think only very large companies can do business with the government, which is untrue. Congress sees how important small businesses are to the U.S. economy and has set aside goal measures for each department to purchase goods and services from small businesses and veteran-owned small businesses.
However, being a government contractor as a small business owner requires an enormous amount of work and lots of steps to be successful. We put together an ebook, “The Government Contractor’s Handbook,” in partnership with FedBid, GovTribe and WinBiz Proposals to help you every step of the way. It covers topics such as teaming up, working with a contracting officer, contract financing, proposal basics, bidding for a contract and managing your sales process.
Today, we’re going to go over one of the most important steps in government contracting – government contract financing and how you can mobilize funding alongside your accounts receivables financing. Without small business contract financing, you’ll find it hard to fulfill those government contracts. Some business owners look toward avenues that aren’t sustainable for their business. Traditional bank loans ask for collateral that add a huge personal risk. Credit cards have high rates and the limits are far below what you need to finance a government contract. Giving up equity and ownership can affect your preferred veteran status.